The UK-based Asia Energy Corporation (Bangladesh) Pte Ltd Sunday submitted a US$ 476 million investment proposal to install a 500-mega watt (mw) coal-fired power plant alongside its planned Phulbari coalmine in Dinajpur. Chief Executive Officer (CEO) of Asia Energy Gary Lye submitted the proposal simultaneously to Board of Investment (BoI) and the Bangladesh Power Development Board (BPDB) to generate power from the plant by 2011. "This proposal for a 500 MW coal-fired power station aims to maximise the synergy of the Phulbari coal project with the rapidly growing energy needs of the country," Lye said. He said in the proposed project there will be provision for adding a second 500 mw power plant unit. The coal power would become increasingly important in Bangladesh as the country develops its coal industry, the Asia Energy CEO said. "The proposal will be sent to the private infrastructure committee (PICOM) headed by Principal Secretary of the Prime Minister's Office (PMO) Kamal Siddiui for final approval," BoI Executive Chairman Mahmudur Rahman told the newsmen immediately after receiving the proposal. The proposed plant would use pulverised technology to generate 3700 giga-watt per hour (GWh) burning 1.5 million tonnes of coal a year. The coal to be used in the power plant is about one tenth of the 15 million tonnes total annual output from the open pit mine of Asia Energy to be developed at Phulbari. Mine-mouth location will achieve economies of scale that will enable the plant to generate electricity at a competitive tariff, company sources said. They said the 500mw generator size would allow the lowest cost power to be generated and stabilise grid operation. The single unit configuration is the largest unit generator size currently planned for the power grid in Bangladesh. This is, however, the second investment proposal placed by the Asia Energy to the government within a week. The company last week submitted scheme of development for its Phulbari coal project involving $ 12 billion investment. It has also submitted the feasibility study with a view to obtaining final approval to start mining activity in 2006. The power plant will be designed, constructed and operated to international standards, utilising modern pollution prevention methods to meet both local and relevant international environmental emission limits, the company claimed. Asia Energy was supported in the preparation of the proposal and plant design by Aldwych International Ltd, a power plant development company based in the UK and by a team that included Black & Veatch International Ltd and O&M Solutions (Bangladesh) Ltd.
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